28 Tex. Admin. Code § 7.1203 - Financial Requirements
(a) The
conventional operations of any life insurance company shall be accounted for
separately from the company's property and casualty reinsurance business.
Accordingly, each life insurance company proposing to engage in property and
casualty reinsurance shall account for this business as a separate line of
business with its own allocated surplus. Life insurance companies transacting
the business of property and casualty reinsurance shall be subject to the same
statutory provisions and administrative rules relating to the maintenance of
reserves for unearned premiums, unpaid losses, and loss adjustment expenses as
are applicable to property and casualty insurers transacting the same kind of
business.
(b) As a condition
precedent to the approval of and continuation of a life insurance company in
the business of property and casualty reinsurance, the life insurance company
shall demonstrate that 20% of its total capital and surplus, as of the end of
the preceding year, is at least equal to the sum of the capital and surplus
required of a property and casualty insurer transacting the same kind of
business, with such amount to be a minimum of $2 million.
(c) The life insurance company must make a
statutory deposit in the State of Texas of $50,000 either in securities as
described in the Insurance Code, Article 2.10, or in cash with the Texas state
treasurer.
(d) A special or
contingency reserve, equal to 1.0% of net annual premium volume at the end of
the preceding year, must be established and maintained in its separate account
on an annual basis. If not used, this fund may be taken into operations at the
end of 10 years at the rate of 0.25% of the 1.0% net annual premium volume or
any portion up to that amount.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.